FINAL WARNING: Financial Background
was given them to be used by themselves, not to be delegated to
individuals or to corporations.” Jackson said that the control of a
central bank “would be exercised by a few over the political conduct of
the many by first acquiring that control over the labor and earnings of
the great body of people.” During the 1828 presidential campaign,
Jackson said in an address before a group of bankers: “You are a den
of vipers. I intend to rout you out and by the Eternal God I will rout you
out.” He went on to say: “If the people only understood the rank
injustice of our Money and Banking system, there would be a
revolution before morning.” Jackson said that if such a Bank would
continue to control “our currency, receiving our public monies, and
holding thousands of our citizens in dependence, it would be more
formidable and dangerous than the naval and military power of the
enemy...”After fiscal mismanagement by its first President, former Secretary of
the Navy, Captain William Jones, the Bank was forced to call in loans
and foreclosed on mortgages, which caused bankruptcy, a price
collapse, unemployment and a depression. However, the Bank began
to flourish under its new President, financier Nicholas Biddle (1786-
1844), who petitioned the Congress for a renewal of the Bank’s Charter
in 1832, four years before its current charter expired. The Bill for the
new Charter passed the Senate, 28-20, and the House 107-85, and
everyone knew how Jackson felt. Biddle threatened: “Should Jackson
veto it, I shall veto him!” Jackson did veto the Charter, and abolished
the Bank in 1832. He ordered the Secretary of the Treasury to remove
all Government deposits from U.S. Banks and deposit them in state
banks. On January 8, 1835, Jackson paid off the final installment on
our national debt, and it was the only time in history that our national
debt was reduced to zero, and we were able to accumulate a surplus,
$35 million of which was distributed to the States. Nicholas P. Trist, the
President’s personal secretary, said: “This is the crowning glory of A.
J.’s life and the most important service he has ever rendered his
country.” The Boston Post compared it to Christ throwing the money-
changers out of the Temple.James K. Polk, the Speaker of the House (who later became the 11th
President in 1845) said: “The Bank of the United States has set itself
up as a great irresponsible rival power of the government.”